Sept. 25 (Bloomberg) -- Blackstone Group LP, the world’s
biggest manager of alternative assets such as private equity and
property, raised $2 billion in the first phase of fundraising
for its fourth European real estate fund, according to a person
with direct knowledge of the process.

Blackstone is targeting 5 billion euros ($6.8 billion) for
the fund, called Blackstone Real Estate Partners Europe IV, said
the person, who asked not to be identified because the process
is private.

Peter Rose, a spokesman for New York-based Blackstone,
declined to comment. The fundraising progress was reported
earlier today by PEI Media’s PERE, a publication focused on
private real estate investing.

Blackstone is preparing for a “growing series” of real
estate sales through 2014, taking advantage of rebounding value
in hotels and commercial property following the global
recession, Tony James, the firm’s president, said in July. The
firm is working on public offerings of Hilton Worldwide Holdings
Inc. and Extended Stay America Inc., and last month agreed to
sell its stake in London’s Broadgate office complex to
Singapore’s sovereign-wealth fund for more than 1.7 billion
pounds ($2.7 billion).

Blackstone’s real estate unit spent $3.5 billion of its
funds’ money in Europe last year “because the distress there is
creating very interesting opportunities,” Jonathan Gray, global
head of real estate, said earlier this year. The firm’s third
European property fund, which raised more than 3.1 billion euros
in 2009, has returned 18 percent a year after fees as of June
30, according to Blackstone’s second-quarter earnings report.

Blackstone is also raising its first Asia real estate fund
and held an initial close in June with $1.5 billion. That pool
is targeting $4 billion, according to the firm.